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Schrute Company has 13,000 units of its sole product in inventory that it produced last year at a cost of $32 each. This year's model
Schrute Company has 13,000 units of its sole product in inventory that it produced last year at a cost of $32 each. This year's model is
superior to last year's, and the 13,000 units cannot be sold at last year's regular selling price of $43 each. Schrute has two alternatives
for these items: (1) they can be sold to a wholesaler for $13 each or (2) they can be processed further at a cost of $280,700 and then
sold for $34 each. Should Schrute sell the products as is or process further and then sell them?
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